New consumer protection rules for heat network customers go live

Compensation will meanwhile be awarded through the Energy Ombudsman to customers who suffer a service outage.

The Department for Energy Security and Net Zero said heat networks customers would receive clearer, itemised billing after some reportedly saw energy prices rise by up to 450% following the increase in gas prices.

Other protections to be introduced include:

• Suppliers required to meet standards of conduct on how they treat consumers, covering customer service, engagement and being transparent and clear when sharing information.
• Consumers will in future be provided with a heat supply agreement, similar to a contract, providing clear terms and conditions and advance notification of any changes to these.
• Vulnerable customers (elderly or those living with health conditions) will be added to a priority services register “so if something goes wrong, they are top of the list to be reconnected”.
• Vulnerable customers will also have new protections shielding them from the forced installation of pre-payment meters.
• More transparency about how a customer’s heat network operates and who to contact if they have a complaint or maintenance issue

Minister for Energy Consumers Martin McCluskey said: “For too long customers on heat networks have been unprotected, being hit with unfair price rises and having to manage with hugely inconvenient service outages.

“It’s simply not good enough - and that is why from today, we’re giving Ofgem new powers to act and hold heat network suppliers operating a poor-quality service to account. 

“Support is already available through the Energy Ombudsman, and I would encourage anyone with an ongoing issue with their heat network to get in touch with them and take advantage of these new consumer rights.”

Commenting on the launch of the new consumer protection rules, Helena Charlton, Director – Heat Networks at Ofgem, said: "This is a major milestone that will, over time, change how these services operate, putting consumers at the heart of everything they do."

She added: "Initially, regulation will focus on creating a reliable, trustworthy environment – encouraging investment in heat networks, while giving customers the confidence they have a right to expect. Many heat network customers already receive a good service, but we also know that too many people face unclear bills, poor communication, or uncertainty about what to do when things go wrong."

Charlton said: "Building on these foundations, we want a regulatory regime that enables the growth of a modern heat networks sector that is integrated into the wider energy system and plays its part in decarbonising Great Britain."

Alongside the new regulations, the Government has allocated more than £47 million of funding through the Green Heat Network Fund to support the development of four heat network projects in Waterloo and Hounslow in London, Sunderland, and Media City in Salford.

Harry Rodd